#111-A: Tax Return Preparation, Hacker Attack — When a hacker penetrated the CPA firm’s computer network, the firm’s cyber coverage responded with an investigation and comprehensive services.
#111-B: Business Management Services, Email Fraud — The client’s email and voicemail had been penetrated by a “man in the middle” who was able to prompt a transfer of client funds into the hacker’s own account.
The significant changes brought about by the passage of the Tax Cuts and Jobs Act (“Tax Act”) last December are complex and wide-ranging. Impacts to CPAs and their clients include uncertainties and new concepts that are further complicated by the extent to which individual states will conform to the law.
With cyber-security threats coming from all directions, it’s important for CPA firms to be aware of how the risk exposures impact the firm as well as the client. Just as important is understanding how an effective cyber insurance program works with the firm before and after a cyber incident occurs.
Cyber exposures and coverages are basically divided along two lines:
First-party, which refers to losses directly borne by the policyholder (or insured) firm, and
CAMICO's recent cyber claims experience shows that the cyber-security of employees working remotely has not been as effective generally as cyber-security in an onsite office location. The lower security is being exploited by hackers, many of whom are increasing their ransomware demands.
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CAMICO continues to monitor the information and guidance on COVID-19 relief measures being put into place by regulatory and legislative bodies to combat the detrimental impacts of this pandemic on people, as well as on the economy.